Omnicom, IPG get ready to tango

The merger gets underway as ad business gets tough with clients pushing services in-house and buying media directly from big tech

- CHRISTINA MONIZ

LAST WEEK, THE Competition Commission of India (CCI) officially approved Omnicom Group's $13-billion acquisition of the Interpublic Group (IPG), thereby making way for what looks set to be a seismic shift for the advertising landscape in India and globally too.

With this, India joins nine other markets, including China, Brazil and Egypt in granting an antitrust clearance for the deal, which is expected to close in the second half of this year.

Both agency networks have had a formidable presence in the Indian market. Experts expect major shifts across client portfolios, leadership and talent in the wake of the acquisition. Speculation is rife about the future of the agencies in each company.

Ad veteran and chairman of Rediffusion, Sandeep Goyal notes that while the industry will have to wait to see the actual impact of the deal, there will inevitably be some job loss and reconfiguring of client alignments. "Going forward, the shakedown is inevitable," says Goyal. In India, IPG agencies enjoyed a stronger foothold, especially in media and digital. "Weaker global brands such as Mullen Lowe and FCB may face headwinds, even extinction. While all three are stronger and larger than Omnicom's DDB, TBWA and BBDO in India, local realities will get papered over. McCann (IPG) is likely to be unaffected," he predicts.